SEHK:577

Stock Analysis Report

Executive Summary

South Shore Holdings Limited, an investment holding company, engages in the hospitality, entertainment, and construction businesses in Hong Kong, Macau, Singapore, and Malaysia.


Snowflake Analysis

Worrying balance sheet with weak fundamentals.

Share Price & News

How has South Shore Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 577's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

41.2%

577

-0.2%

HK Construction

-0.6%

HK Market


1 Year Return

-54.3%

577

-27.4%

HK Construction

-7.6%

HK Market

Return vs Industry: 577 underperformed the Hong Kong Construction industry which returned -27.4% over the past year.

Return vs Market: 577 underperformed the Hong Kong Market which returned -7.6% over the past year.


Shareholder returns

577IndustryMarket
7 Day41.2%-0.2%-0.6%
30 Day53.2%-2.9%-1.2%
90 Day44.0%-3.3%3.0%
1 Year-54.3%-54.3%-23.9%-27.4%-4.2%-7.6%
3 Year-98.5%-99.4%-35.5%-42.4%12.9%1.5%
5 Year-98.9%-99.5%-26.9%-37.7%13.1%-5.6%

Price Volatility Vs. Market

How volatile is South Shore Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is South Shore Holdings undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether South Shore Holdings is trading at an attractive price based on the cash flow it is expected to produce in the future. But as South Shore Holdings has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of 577’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through South Shore Holdings regulatory filings.
  • Explore potentially undervalued companies in the Capital Goods industry.

Future Growth

How is South Shore Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.9%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as South Shore Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has South Shore Holdings performed over the past 5 years?

-80.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 577 is currently unprofitable.

Growing Profit Margin: 577 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 577 is unprofitable, and losses have increased over the past 5 years at a rate of -80% per year.

Accelerating Growth: Unable to compare 577's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 577 is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (-5.4%).


Return on Equity

High ROE: 577's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is South Shore Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 577 has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: 577 has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: 577 has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: 577's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: 577 has a high level of physical assets or inventory.

Debt Coverage by Assets: 577 has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 577 has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: 577 has less than a year of cash runway if free cash flow continues to grow at historical rates of 7.6% each year.


Next Steps

Dividend

What is South Shore Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.3%industryaverage4.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 577's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 577's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 577's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 577's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 577 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 577's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

13.9yrs

Average board tenure


CEO

South Shore Holdings has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Peter Lee Coker
Chairman of the Board0yrsHK$7.92m0.63% HK$918.2k
Ko Yuen Lau
Deputy Chairman of the Board15.1yrsHK$7.84m8.64% HK$12.6m
Kok Chung Chan
Independent Non-Executive Director5.3yrsHK$466.00kno data
Iain Ferguson Bruce
Independent Non-Executive Director15.1yrsHK$1.27m0.0089% HK$12.9k
Chack Fan Lee
Independent Non-Executive Director15.1yrsHK$1.19mno data
James Chiu
Independent Non-Executive Director13.9yrsHK$1.39mno data
Francis Goutenmacher
Independent Non-Executive Director & Member of Luxury Advisory Board7yrsHK$1.37mno data
Christian Blanckaert
Member of Luxury Advisory Board0yrsno datano data
Walter Craig Power
Non-Executive Director7yrsHK$9.31mno data
Mimi Tang
Member of Luxury Advisory Board0yrsno datano data

13.9yrs

Average Tenure

74yo

Average Age

Experienced Board: 577's board of directors are seasoned and experienced ( 13.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 42.6%.


Top Shareholders

Company Information

South Shore Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: South Shore Holdings Limited
  • Ticker: 577
  • Exchange: SEHK
  • Founded: 1946
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$145.865m
  • Shares outstanding: 1.01b
  • Website: https://www.southshore-holdings.com

Number of Employees


Location

  • South Shore Holdings Limited
  • China Merchants Tower
  • Room 1005, 10th Floor
  • Sheung Wan
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
577SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 2005
LOUI.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 2005
KY2EDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 2005

Biography

South Shore Holdings Limited, an investment holding company, engages in the hospitality, entertainment, and construction businesses in Hong Kong, Macau, Singapore, and Malaysia. The company’s Management Contracting segment offers building construction and civil engineering services. Its Property Development Management segment develops and manages projects, as well as provides facilities and asset management services. The company’s Property Investment segment invests in properties. Its Hotel Development segment operates hotels with ancillary facilities. The company also manufactures, trades in, and installs concrete products and construction works; and offers electrical and mechanical services, as well as finance, interior decoration and foundation works, and management and secretarial services. In addition, it is involved in the trade and letting of plant and machinery; and trade and installation of building materials. The company was formerly known as The 13 Holdings Limited and changed its name to South Shore Holdings Limited in June 2018. South Shore Holdings Limited was founded in 1946 and is based in Sheung Wan, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 12:45
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.